CNET has contacted Icahn's company, Icahn Enterprises, for comment. The CNBC report said Icahn "wouldn't discuss Dell or any rationale he had for the investment."

Leveraged recapitalization is one of the suggestions made by Dell's top shareholders last month, shortly after Dell announced plans to go public with a $24.4 billion deal. Instead of the buyout, which investors said undervalues the company, leveraged recapitalization would let the company raise money by borrowing funds.

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Icahn's reputation precedes him. His investments in some companies, including RJR Nabisco, Texaco, Lionsgate, Western Union, Take-Two Interactive, Yahoo, and Blockbuster were followed by management shakeups and proxy fights.